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File #: 23-1015   
Type: Consent Calendar Status: Passed
File created: 11/13/2023 In control: City Council/Public Financing Authority
On agenda: 11/21/2023 Final action: 11/21/2023
Title: Request for use of additional SLESF funds to fund and finalize purchase of a Police helicopter
Attachments: 1. Att #1 - MD Helicopter Agreement, 2. Att #2 - Letter of Intent to purchase N523HB, 3. 11/21 Sup Com - PD Memo with Purchase Contract
REQUEST FOR CITY COUNCIL ACTION

SUBMITTED TO: Honorable Mayor and City Council Members

SUBMITTED BY: Eric G. Parra, Interim City Manager

VIA: Eric G. Parra, Chief of Police

PREPARED BY: Capt. Gaute Svendsbo and Ingrid Ono

Subject:
title
Request for use of additional SLESF funds to fund and finalize purchase of a Police helicopter
body

Statement of Issue:
Authorize the use of Supplemental Law Enforcement Services Fund (SLESF) monies to fund $500K in costs associated with the delivery of a third and final police helicopter 530F from MD Helicopters, Inc. Funds will be reimbursed into the SLESF account upon the sale of police helicopter N523HB.
Financial Impact:
Staff is requesting City Council approval to appropriate and utilize $500K to account 98470101 to fund and finalize purchase of the final 530F helicopter. Sufficient fund balance is available in the SLESF Fund to cover these costs. Utilized funds, minus 2.7% broker commission, will be reimbursed to the SLESF account after the sale of N523HB.
Recommended Action:
recommendation
A) Authorize the use of an additional $500K in SLESF funds to finalize the purchase of a police helicopter 530F; and

B) Appropriate $500K from the SLESF fund balance to account 98470101.
end
Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
In June 2021, the City entered into an agreement with MD Helicopters, Inc. (MDHI) to purchase three new MD 530F helicopters to replace the Police Department's (HBPD) aging fleet of three 520N (Notar) helicopters, at a discounted net price of approximately $8M (after value received from the sale of HBPD's three 520N helicopters) (See Attachment 1). In addition, MD Australia had offered to purchase HBPD's inventory of additional 520N parts for approximately $400K. Lastly, MDHI agreed to facilitate the sale of HBPD's existing fleet of 520N helicopters.
The agreement outlined the following delivery schedule for the new air...

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